Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from a difference in its price. In finance, arbitrage refers to the simultaneous buying and selling of assets in a different market for profit.Thus, municipalities could use the tax code to finance projects and make money from investing bond proceeds at the same time. Arbitrage is when an asset (stocks, currencies, etc.) is bought in one market and sold in another for a higher price. Airbnb rental arbitrage involves leasing a property longterm and then renting it out shortterm on platforms like Airbnb. Geographic arbitrage means taking advantage of the differences in prices between various locations. You earn money in a stronger economy.